Arlington, VA Solar Panels

Virginia’s SREC program was created under the Virginia Clean Economy Act (VCEA) of 2020. For every 1,000 kWh (1 MWh) of electricity your solar panels generate, you earn one Solar Renewable Energy Certificate (SREC). Utilities are required to purchase these certificates to meet their Renewable Portfolio Standard (RPS) obligations, creating a real and ongoing market for your solar generation. A typical 6 kW residential system produces approximately 6–8 SRECs per year in Virginia.

Current SREC prices in Virginia range from approximately $22.50 to $35 per certificate, with a state-mandated price cap of $75 per SREC. Each SREC is valid for 5 years from the year it is generated, giving you flexibility in when to sell. An SREC broker or aggregator (such as SRECTrade or SolSystems) will typically handle the sale automatically on your behalf.

Any Virginia solar owner is eligible regardless of which utility serves their home, including residents of Arlington. To participate, you must complete the utility interconnection process and register your system with an SREC aggregator or broker within the same calendar year as your interconnection date. The solar carve-out requirement under the RPS is set to increase from 1% to 3% in 2026 and to 5% in 2028, which is expected to sustain demand for SRECs going forward.

Virginia’s net metering program allows residential solar customers of Dominion Energy to earn full retail-rate bill credits for any surplus electricity their system sends to the grid — a one-to-one transaction. Arlington is served by Dominion Energy. Credits roll over monthly, and any unused credits remaining after a 12-month period can be carried forward or paid out at the avoided-cost rate. To participate, your system must be under 25 kW in capacity and cannot be sized to exceed 100% of your expected annual energy consumption based on your previous 12-month billing history.

Important 2026 Update: Dominion Energy has proposed changes to net metering compensation for new customers (NEM 2.0). Dominion’s proposal would shift to real-time (half-hourly) netting and base credit rates on distributed solar PPA rates rather than the full retail rate — potentially cutting the credit by nearly half. The State Corporation Commission (SCC) held an evidentiary hearing in January 2026 and is expected to issue a final order by mid-2026. Customers who install solar and connect to the grid before the SCC issues its final order will be grandfathered under the existing full retail-rate rules.

Participation is available on a first-come, first-served basis. The aggregate capacity limit is 6% of the prior year’s peak-load forecast, with 1% reserved for low-income customers and 5% available for all other customers. Income-eligible customers will have the option to install solar under either the current rules or the new ones. The program is governed by Virginia Code § 56-594 and overseen by the Virginia State Corporation Commission.

While the federal Residential Clean Energy Tax Credit (Section 25D) for solar panels was eliminated effective January 1, 2026, the battery storage portion of this credit remains available for qualifying installations in 2026. Homeowners can claim a 30% federal tax credit on the full cost of a new battery storage system with a capacity of 3 kWh or larger. For a typical home battery system costing $10,000–$15,000, this credit can save homeowners $3,000–$4,500 on their federal income taxes.

To qualify for the 2026 credit, the battery storage system must be installed alongside solar panels as part of the same project. Standalone battery installations without a co-located solar system do not qualify under the residential Section 25D credit. The credit is non-refundable, meaning it can reduce your federal tax liability to zero but will not result in a refund; however, any unused portion may be carried forward to future tax years.

It is important to consult a qualified tax professional to confirm your eligibility and ensure proper documentation. The credit is claimed using IRS Form 5695. Note that battery systems installed through a third-party solar lease or Power Purchase Agreement (PPA) do not qualify for the homeowner credit, as the tax benefit flows to the system owner (the leasing company) rather than the subscriber.

The Virginia Shared Solar Program allows any retail customer of Dominion Energy to subscribe to a portion of a larger, off-site solar facility without installing panels on their own property. Arlington residents served by Dominion Energy can subscribe to receive credits on their monthly electricity bills based on their proportional share of the solar energy produced, resulting in guaranteed savings of 10% or more — approximately $175 per year — with no upfront investment or installation required. This makes solar accessible to renters, condo owners, and homeowners whose roofs are not suitable for solar panels.

The program is expanding significantly in 2026. Legislation (SB 254/HB 807) authorizes Dominion Energy to release an additional 525 MW of shared solar capacity by July 1, 2026, with a dedicated portion reserved for low-income subscribers. At least 40% of each shared solar facility’s capacity must be allocated to customers with subscriptions of 25 kW or less.

Participants should be aware of a minimum monthly bill requirement of approximately $55, which covers utility infrastructure and service costs. Low-income customers are exempt from this minimum bill charge. Dominion Energy also applies a 1% Net Crediting Fee to process shared solar credits. To enroll, contact Dominion Energy directly or visit the Virginia State Corporation Commission’s shared solar page for program details and current availability.